Fitch Rates New York City, NY's $1.1B GOs 'AA-'; Outlook Negative
Fitch Ratings - New York - 26 Feb 2021: Fitch Ratings has assigned a 'AA-' rating to New York City's approximately $1.1 billion GO bonds, fiscal 2021 series F GO bonds, including the following:
--Approximately $900 million tax-exempt bonds, subseries F-1;
--Approximately $107.19 million taxable bonds, subseries F-2;
--Approximately $92.81 million taxable bonds, subseries F-3.
The city's Issuer Default Rating (IDR), and the rating on approximately $38 billion in outstanding GO bonds, is 'AA-'.
The Rating Outlook is Negative.
The subseries F-1 bonds will be priced by negotiation beginning March 1. Subseries F-2 and F-3 bonds will price by competitive sale on March 3. Proceeds will finance various general capital expenditures and pay costs of issuance.
Concurrent with the delivery of the bonds, the city expects to (i) reoffer approximately $349,060,000 aggregate principal amount and convert from variable rates to fixed rates its fiscal 2008 series L, subseries L-5 bonds; fiscal 2012 series G, subseries G-3 bonds; fiscal 2012 series G, subseries G-4 bonds; fiscal 2012 series G, subseries G-6 bonds; and fiscal 2012 series G, subseries G-7 bonds; (ii) reoffer approximately $85,000,000 aggregate principal amount and convert from variable rate to a stepped coupon rate its fiscal 2015 series F, subseries F-4; and (iii) reoffer approximately $259,350,000 aggregate principal amount and convert from variable rate demand bonds to adjustable rate remarketed securities its fiscal 2012 series G, subseries G-3 bonds; fiscal 2012 series G, subseries G-4 bonds; and fiscal 2012 series G, subseries G-7 bonds. Fitch's 'AA-' rating and Negative Outlook will continue to apply to these bonds upon conversion.